Answer:
option (a) is correct.
Explanation:
Economic profits refers to the profits which comes out after deducting the implicit costs and explicit costs from the total revenue.
Whereas the accounting profits takes into the effect of explicit costs only.
Implicit cost refers to the loss of money income by choosing some other alternative. It is also known as the opportunity cost.
Explicit costs refers to the costs that are incurred for operating or running a business.
Accounting profit = Total revenue - Explicit costs
Economic profit = Total revenue - Explicit costs - Implicit costs
Therefore, if the implicit costs are greater than zero then the economic profits is less than the accounting profits.
Answer:
C. Embargo
Explanation:
Trade Barriers are the conditions or restrictions that are imposed on the business transactions that controls the business to be sold out to the hands of foreign markets. These barriers add obstacles so that the businesses are restricted through various means. When a complete ban is imposed on the import or export of any goods to the foreign markets, the situation is termed as embargo. This type of ban is imposed for the defense purposes.
Answer:
$16.27
Explanation:
For computing the intrinsic value, first we have to compute the earning per share which is shown below:
Earning per share = (Net income) ÷ (Number of shares outstanding)
= ($14.73 million) ÷ (20.05 million shares)
= 0.734
Now the intrinsic value would be
= Earning per share × P/E ratio
= 0.734 × 22.17
= $16.27
Answer:
B) The law of demand
Explanation:
The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Ceteris paribus means all things being equal.
Says law says supply creates its own demand.
I hope my answer helps you
